AGENDA ITEM A1. Tampa Bay Water Regular Meeting August 17, 2015 Minutes

DRAFT AGENDA ITEM A1 Tampa Bay Water Regular Meeting August 17, 2015 Minutes The Board of Directors of Tampa Bay Water met in their offices, 2575 Enterprise Road, Clearwater, Florida 33763. BOARD MEMBERS PRESENT: Present: Chairman Commissioner Ted Schrader, Pasco County Vice Chairman Councilman Karl Nurse, City of St. Petersburg Commissioner Ken Hagan, Hillsborough County Commissioner Jack Mariano, Pasco County Mayor Rob Marlowe, City of New Port Richey Councilman Charlie Miranda, City of Tampa Commissioner John Morroni, Pinellas County Absent: Staff: Presenters: General Counsel: Commissioner Sandra Murman, Hillsborough County Commissioner Kenneth Welch, Pinellas County Matt Jordan, General Manager Suzannah Folsom, Senior Professional Engineer Dave Bracciano, Demand Management Coordinator Warren Hogg, Water Use Permitting Manager David G. Roberts, KPMG LLP Michael C. Mendolera, KPMG LLP Barrie Buenaventura, General Counsel A list of others present who signed the attendance roster was filed in the permanent files of Tampa Bay Water. Staff and Consultants presenting to the Board are listed above. Chairman Ted Schrader called the Regular Meeting to order at 9:30 a.m. T:\Gen_Manager\Goelz\Board Meetings\Board Minutes\2015\Minutes August 2015

PUBLIC COMMENT Chairman Schrader opened the regular Board meeting public comment. The following speaker(s) made public comment to the Board of Directors: Mark Klutho Public comment was duly recorded and is filed in the permanent records of Tampa Bay Water. CONSENT AGENDA A. GENERAL MANAGER 1. Board Minutes for June 15, 2015 Board Meeting Approve 2. Board Minutes for July 13, 2015 Emergency Board Meeting Approve B. GENERAL COUNSEL 1. Regulatory Plan for 2015-2016 Approve 2. Special Counsel Current Assignments and Purchase Orders Approve C. WATER PRODUCTION 1. Construction Project Closeout(s): a. Eldridge Wilde H2S Treatment Facility Improvements and Pinellas County Point of Connection Project - Construction Contract and Joint Project Agreement Closeout - Approve b. Alafia Pump Station Modifications, Project No. 06315 (Contract 2013-039) Project Closeout Approve c. Section 21 Wellfield Electrical Improvements Project Construction Contract Closeout and Real Property Disposition: Partial Release of Easement to the City of St. Petersburg Approve 2. Cosme Bypass Analyzer Enclosure Award Pre-Qualified Assignment No. 2015-305 to lowest responsive responsible proposer QRC, Inc. under Contract No.: 2014-049 Approve 3. South-Central Hillsborough Regional Wellfield Arc Flash Mitigation Award Pre- Qualified Assignment No. 2015-306 to lowest responsive responsible proposer Electrical Engineering Enterprises, Inc., under Contract No.: 2014-052 Approve 4. Facilities Site SWTP Process Piping Repair Award Pre-Qualified Assignment No.: 2015-308 to the lowest, responsive responsible proposer, Wharton-Smith, Inc. under Contract No.: 2014-048 Approve 5. Tampa Bay Water Participation in the Department of Homeland Security Regional Resiliency Assessment Program (RRAP) - Approve 6. Real Property Disposition - Eastshore Commerce Park Facilities Site, First Amendment to the Purchase and Sale Agreement with Trademark Nitrogen Corp. - Approve 7. Energy Management Program - Status Report

8. Amendment No. 1 to Contract No. 2014-044 with Electronic Data Inc. for Computerized Maintenance Management System Implementation Services Approve 9. Real Property Disposition: Site Lease Agreement for a 80 x 80 parcel located at the Cypress Bridge Water Treatment Plant with North American Towers, LLC Approve 10. High Service Pump Station Auxiliary Power Generator No. 2 Failure Authorization for Emergency and Standard Repair Purchases - Approve D. SCIENCE AND TECHNOLOGY 1. Water Quality Update Status Report 2. Hydrologic Conditions Report for June 2015 and July 2015 and the past 12-Month Period (August 1, 2014 through July 31, 2015) Status Report 3. Professional Services Contract Water Use Permit-Required Aerial Photography Contract No. 2016-001 with Aerial Cartographics Of America, Inc., Approve 4. Long Term Demand Forecasting Model Redevelopment Status Report 5. Amendment No. 1 to Contract No. 2015-011 with Hazen and Sawyer, P.C. for Long- Term Master Water Plan Update and Feasibility Program- Approve 6. Regional Water Supplies and Member Demand Status Report 7. Regional Demand Management and Member Government Water Conservation Activities Status Report 8. Tampa Bay Regional Surface Water Treatment Plant NPDES Permit No. FL0187691 Renewal Application Submittal to Florida Department of Environmental Protection and the Environmental Protection Commission of Hillsborough County Approve 9. Laboratory Information Management System Replacement Award Contract No.: 2016-011 to Promium, LLC - Approve E. FINANCE 1. Contract Renewals Approve 2. Tampa Bay Water Insurance Program Delegation of authority for selection of Fiscal Year 2016 Insurance Program Approve 3. Tampa Bay Water Employee Insurance Program Delegation of authority for selection of Fiscal Year 2016 Employee Insurance Program - Approve 4. General Manager s Quarterly Travel Report Approve 5. Resolution 2015-002 to Modify the 2013 Project Descriptions - Approve 6. Year-end Reporting of Rate Stabilization Account and Fund Transfers for Encumbered and Unencumbered Funds - Approve F. CONSENT DISCUSSION Chairman Schrader announced the Consent Agenda and noted that Item C.9 was withdrawn. Chairman Schrader recognized Councilman Charlie Miranda for comment on Item D.5. Councilman Miranda thanked staff for renegotiating scope changes to the contract at no additional costs. He also stated that the City of Tampa understands these scope changes include a study by the consultant on what Tampa Bay Water would pay the City for their reclaimed water for the re-use projects. The study should also determine how much

reclaimed water is appropriate to buy. The City of Tampa has 60 million gallons available and he believes the City could sell about half of it. Chairman Schrader stated that Councilman Miranda s comment was duly noted and called for a motion to approve the Consent Agenda. Motion: Commissioner John Morroni moved for approval of the Consent Agenda. Commissioner Jack Mariano seconded the motion. Vote: The motion carried by a vote of 7-0. REGULAR AGENDA G. GENERAL MANAGER 1. Executive Committee Report and Minutes July 20, 2015 Matt Jordan Matt Jordan announced that Tampa Bay Water Regional Surface Water Treatment Plant was recently awarded the Chairman s Award by the Florida Water and Pollution Control Operators Association. Mr. Jordan noted that the Chairman s Award is the highest honor awarded by the Association in recognition for safety. Mr. Jordan recognized and congratulated the agency s operational staff and Veolia Water for receiving this honored award. Mr. Jordan provided an update on the Executive Committee meeting which was held on July 20, 2015, in the Tampa Bay Water offices. He gave a brief description of each item. There were no comments from the board members. H. GENERAL COUNSEL No items were presented to the Board. I. WATER PRODUCTION 1. 2035 System Hydraulic and Emergency Scenario Analysis Presentation by Suzannah Folsom Suzannah Folsom presented the 2035 System Hydraulic and Emergency Scenario Analysis. Ms. Folsom explained the report addressed meeting demands for the next 20 years in normal and emergency conditions. The report was an in-house effort, utilized consulting assistance from Black & Veatch as well as input from member governments. This report updates and expands a similar analysis completed in 2006. As a result of the 2006 analysis, the Loop 72 Project was deferred and 16 smaller projects were undertaken. To date, 12 of the 16 projects have been completed. In an effort to update the 2006 analysis, Tampa Bay Water performed a comparison to other large

wholesale water utilities, evaluated the agency s supply and delivery requirements, and peak and future demands. An analysis of the system hydraulics showed that the agency s supply and pumping capacity are sufficient for future demands, however, additional storage would be beneficial. Ms. Folsom noted that it will be increasingly difficult to supply South-Central Hillsborough due to existing piping constraint. The report also analyzed scenarios concerning emergency situations that could cause deficiencies in flow and pressure, such as pipe breaks, major facility outages and widespread power outages. The agency s wellfields have 99.99% availability at average demand. Right-sizing wellfields could provide long-term cost savings in maintenance. Commercial and standby power is sufficient to meet member government demands to 2035. Next steps include: continue standby power Renewal and Replacement projects; update the emergency analysis in the 2018 Long-Term Master Water Plan; incorporate facility availability calculations in overall System-Wide Reliability Model; complete wellfield right-sizing; and explore an emergency scenario planning exercise with member governments. Commissioner Mariano asked, with all of the improvements to the reservoir and the desalination plant, has the agency over built what is needed. Ms. Folsom explained, historically, Tampa Bay Water was once an all ground water system. Alternative water supplies were built producing a legacy of ground water wells. Commission Mariano asked if they were inefficient or not necessary. Ms. Folsom stated that the agency currently has more wellfield machine capacity than the permitted supply. Mr. Jordan explained that when the desalination plant was built, demands were high. Since the down turn of the economy demands have decreased, however, demands have started to rebound and level off. Due to the downturn in water demand, there is no need for additional facilities for approximately 15 years. Councilman Nurse asked if there is a need for the current number of wells. Ms. Folsom responded that the agency has four times the machine capacity than permit capacity. No Board action is required on this item. J. SCIENCE AND TECHNOLOGY 1. Florida Friendly Landscaping Program One-year Funding Agreements with Pasco, Pinellas and Hillsborough counties Approve and Presentation by Dave Bracciano Dave Bracciano provided a presentation on the implementation of the Florida Friendly Landscaping Program (FFL) in the tri-county areas. Mr. Bracciano gave a brief background of the program and explained the environmental and water conservation benefits. Last year, the program spoke to over 100,000 people in the region through workshops, articles, radio and television, and individual contact. Mr. Bracciano explained how the program savings were tracked and provided information on new programs being implemented highlighting modifying landscaping to reduce water usage. The Public Education Coordinator position has been working to implement a

standard landscape maintenance contract to be used throughout the State of Florida. The focus for 2016 include: continuing to work with existing builders on plant establishment modification; fund a training program at University of Florida on how to use soil moisture sensor controllers for FFL coordinators; continue tracking of program implementation, actual and potential savings rates, evaluation of those metrics; work with FFL coordinators to provide reports with necessary detail to estimate water savings. Mr. Bracciano requested the approval of Item J.1. Commissioner Morroni congratulated the Board for its involvement in funding the program. Commissioner Morroni asked how the public hears of the FFL program and what the most effective way to educate the public is. Mr. Bracciano explained that multiple media outlets have been used. FFL coordinators distribute newsletter articles which are published by newspapers, public television, and posts on the Agency s website. Results of surveys conducted by the Agency found that the FFL program is widely recognized. Commissioner Morroni stated he would like to see the program receive more radio and television exposure and congratulated Mr. Bracciano on the success of the program. Councilman Nurse asked what the cost savings is per gallon. Mr. Bracciano responded there is no one set of implementation strategies to quantify the costs. Councilman Nurse asked if there is a way to provide an estimation so the cost can be compared to potential future expansion costs. Mr. Bracciano responded that the University of Florida is providing guidance on savings estimates for different elements of the program, 2015 will be the first year the agency will have those numbers. Councilman Nurse commented that the program is a less expensive option than future expansion choices. Mr. Bracciano added that when the agency can apply the FFL program and the soil sensor concepts, the agency will know how much the soil sensor programs will save. Motion: Commissioner John Morroni moved approval of the Consent Agenda. Commissioner Jack Mariano seconded the motion. Vote: The motion carried by a vote of 7-0. 2. Environmental Conditions of Lakes and Wetlands Presentation by Warren Hogg Warren Hogg provided a presentation on the Environmental Conditions of Lakes and Wetlands. Mr. Hogg stated that the pumpage reduction over the last several years and the return to normal rainfall has resulted in very healthy wetlands across the region. Mr. Hogg continued by defining a healthy wetland and explaining the process and cost of environmental monitoring. By streamlining the monitoring programs, the Agency has reduced related consulting costs by approximately 45%. The Agency worked with the Water Management District and Hillsborough County to determine that pumpage at the South Central Wellfield does not influence lake and wetland water levels, subsequently deleting that program at a cost savings of $135,000 per year. It was determined that pumpage of the Brandon Dispersed Wells has no impact to the area lake and wetland water levels. Tampa Bay Water worked with the District and Hillsborough County to eliminate the ecological monitoring program under that permit

at a similar savings. The Agency has been very successful in managing the wetland mitigation areas of the regional reservoir allowing the Agency to reduce monitoring and reporting costs. Mr. Hogg stressed the importance of aerial photographs to assist in monitoring and evaluating the health and recovery of wetlands. Pumpage in 11 wellfields has been reduced greatly since 2003, averaging 80 mgd for the last six years. Mr. Hogg provided photos from four separate wellfields noting the rise in water levels due to a return of normal rainfall and reduction in wellfield pumpage, explaining that the area has been experiencing these high water levels for the last four years. The Agency s Recovery Assessment Plan includes evaluating recovery in wetlands and lakes, identifying any remaining adverse impacts, addressing remaining impacts and working closely with the District to understand how the system is responding. Commissioner Mariano asked if there are any sites that have not recovered. Mr. Hogg explained that it is a long-term process and it is too early to evaluate each specific lake and wetland. Some sites have experienced higher levels in the last one to four years; however, data must continue to be collected to assess if that is a sustained condition. Commissioner Mariano asked if the groundwater levels in the Upper Peace River basin have recovered. Mr. Hogg stated that the District is evaluating the recovery of area and that water levels have not recovered in that area. Chairman Schrader commented that data shows that the area will experience a drought sometime in the future which will indicate how well the wetlands will maintain themselves. No Board action is required on this item. K. FINANCE 1. Management & Performance Audit Presentation by David G. Roberts, Director, KPMG LLP Chairman Schrader turned the meeting over to General Manager, Matt Jordan. Mr. Jordan explained that the Agency is required by the Interlocal Agreement to perform a Management & Performance Audit every five years. Mr. Jordan introduced David Roberts of KPMG, to provide a presentation on their report. Mr. Roberts introduced the KPMG team involved in conducting and evaluating the audit. Mr. Roberts explained that the scope of the audit involved assessing five areas of performance defined by the Board. Interviews of the Agency management and staff were conducted to develop a mutually agreed upon scope of services. The project scope was organized into five distinct functional areas with specific sub focus areas within each functional area. KPMG received 88 survey responses representing 68% of Tampa Bay Water s personnel. KPMG spoke with four Members of the Board as well as six of the member governments on the Agency s overall strength and opportunities for improvement. Mr. Roberts stated that the audit showed that the Agency has started and completed numerous initiatives to continue to improve and enhance its operating performance. The Agency has continued to effectuate recommendations from previous performance audits as well as implement additional improvements such as ISO 14001. Tampa Bay Water is currently in various stages of

implementation of 32 of the 58 KPMG recommendations. Mr. Roberts stated that details of the recommendations are located in the full report. Mr. Roberts noted that Tampa Bay Water is a well-performing organization committed to effective performance, operations, communication, and continuous improvement. Mr. Roberts introduced Michael Mendelora of KPMG. Mr. Mendelora provided a summary of the 15 key recommendations. Commissioner Morroni asked if the 26 recommendations not currently in progress could be completed over the next year or the next five years. Mr. Roberts explained that some recommendations have a longer implementation or benefit realization, but all should be able to advance to some extent within the next year. Commissioner Morroni asked if KPMG had indicated which recommendations the Agency needs to implement right away. Mr. Roberts responded yes. Commissioner Schrader thanked KPMG for their presentation and work. No Board action is required on this item. L. OLD BUSINESS AND OTHER ADMINISTRATIVE MATTERS 1. General Manager Annual Evaluation Chairman Schrader Chairman Schrader stated that, as part of the General Manager s contract, an evaluation of the General Manager is performed annually. Chairman Schrader thanked the Members of the Board for submitting their evaluations. Chairman Schrader stated that Mr. Jordan received a positive evaluation and thanked Mr. Jordan for his outstanding job and for leading the Agency in right direction. Mr. Jordan thanked the Board for their continued support and his staff for their efforts. M. RECEIVE & FILE 1. Human Resources Activity Report for June and July 2015 2. General Counsel Activity Report a. Legal Services Activity Report for June and July 2015 b. Legal Services Budget Report for June and July 2015 3. Public Affairs Activity Report for June and July 2015 4. Finance Activity Report: a. Finance and Administration Activity Report for June and July 2015 b. Comprehensive Check List with delegated Check Approval for May and June 2015 c. Investment Schedule as of May and June 2015 d. Financial Statements and Fund Analysis for May and June 2015 e. Disposition of Fixed Assets through June 2015 f. Vendor Status Report through June 2015 g. Quarterly Budget Report on Adjustments & Amendment through June 2015 5. Water Production Activity Report for June and July 2015 6. Science and Technology for June and July 2015

Motion: Commissioner Charlie Miranda moved for approval of Receive & File. Commissioner John Morroni seconded the motion. Vote: The motion carried by a vote of 6-0 (Commissioner Hagan was not present during the vote). IV. ADJOURNMENT The Board adjourned at 10:38 a.m. Attest: Matt Jordan, General Manager/Secretary Date: